Monday, April 11, 2005
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The crazy life of a city-state
Normally when a country's GDP shrinks by more than five percent
The last two paragraph suggest one reason why Bretton Woods 2 might persist for longer than some predict. If Singapore decides to halt the appreciation of its currency, it's going to buy more dollars. posted by Dan on 04.11.05 at 12:31 PMComments: Careful, mister Degree-in-Economics. Singapore's GDP didn't "shrink by more than five percent in three months." It shrunk 5.8% on an annualized basis-- which is to say, something closer to 1.5% in three months. posted by: Jacob T. Levy on 04.11.05 at 12:31 PM [permalink]1.45% :-) posted by: Scott Ferguson on 04.11.05 at 12:31 PM [permalink]I don't think that Singapore's reserves or exchange rate decisions are as important as those of China, Japan and South Korea; that is to say, I wouldn't look at this case and say that this is a reason Bretton Woods 2 might last longer. posted by: Nick Kaufman on 04.11.05 at 12:31 PM [permalink]Some of that volatility of being a city-state carries over to other countries with large multinational manufacturing sectors. A good example (or at least the one I know about) is the Republic of Ireland. Check out the growth stats in the final column of Table 1 in the attached. http://www.cso.ie/releasespublications/documents/economy/current/qna.pdf Post a Comment: |
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